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HomeMy WebLinkAbout20240624IPC to Staff 33-42.pdf IDAH0 An IDACORP Company RECEIVED 2024 June 24 AM 9:29 IDAHO PUBLIC MEGAN GOICOECHEA ALLEN UTILITIES COMMISSION Corporate Counsel mgoicoecheaallen(cDidahopower.com June 24, 2024 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Boulevard Building 8, Suite 201-A Boise, Idaho 83714 Re: Case No. IPC-E-24-11 In the Matter of the Application of Idaho Power Company for a Determination of 2023 Demand-Side Management Expenses as Prudently Incurred Dear Commission Secretary: Attached for electronic filing is Idaho Power Company's Response to the Third Production Request of the Commission Staff in the above-entitled matter. Due to the collectively voluminous confidential and non-confidential information provided in response to data requests in this case, the Company is posting the attachments to these requests to the secure FTP site to allow parties to view the requested information remotely unless otherwise noted in the response. Because certain attachments contain confidential information, the FTP site is divided between confidential and non-confidential information. The login information for the non-confidential portion of the FTP site has been provided to all parties that have intervened to date. The login information for the confidential portion of the FTP site has been provided to the parties that have executed the Protective Agreement in this matter. If you have any questions about the attached documents, please do not hesitate to contact me. Sincerely, Megan Goicoechea Allen MGA:sg Enclosures P.O.Box 70(83707) 1221 W.Idaho St. Boise,ID 83702 CERTIFICATE OF ATTORNEY ASSERTION THAT INFORMATION CONTAINED IN AN IDAHO PUBLIC UTILITIES COMMISSION FILING IS PROTECTED FROM PUBLIC INSPECTION Application of Idaho Power Company for Determination of 2023 Demand-Side Management Expenses as Prudently Incurred Case No. IPC-E-24-11 The undersigned attorney, in accordance with Commission Rule of Procedure 67, believes that the attachment to data request no. 42, provided in Idaho Power Company's Response to the Third Production Request of the Commission Staff dated June 24, 2024, may contain information that Idaho Power Company and a third party claims constitutes trade secrets and/or confidential business records of a private enterprise required by law to be submitted to or inspected by a public agency as described in Idaho Code § 74-101 , et seq., and/or§48-801, et seq. As such, it is protected from public disclosure and exempt from public inspection, examination, or copying. DATED this 24t" day of June, 2024. �fA�CI UyJUU�L Megan Goicoechea Allen Counsel for Idaho Power Company CERTIFICATE OF ATTORNEY- 1 MEGAN GOICOECHEA ALLEN (ISB No. 7623) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5317 Facsimile: (208) 388-6936 mgoicoecheaal len(o-)_idahopower.com Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION ) OF IDAHO POWER COMPANY FOR A ) CASE NO. IPC-E-24-11 DETERMINATION OF 2023 DEMAND-SIDE ) MANAGEMENT EXPENSES AS ) IDAHO POWER COMPANY'S PRUDENTLY INCURRED. ) RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF COMES NOW, Idaho Power Company ("Idaho Power" or "Company"), and in response to the Third Production Request of the Commission Staff ("Commission" or "Staff") to Idaho Power Company dated June 3, 2024, herewith submits the following information: IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 1 STAFF REQUEST FOR PRODUCTION NO. 33: Please explain if the Company is considering increasing the funding amounts for any CAP agencies. RESPONSE TO STAFFS REQUEST FOR PRODUCTION NO. 33: As an outcome of its last general rate case (IPC-E-23-11) the Company committed to work with Staff and the Community Action Partnership (CAP) agencies to develop implementation and ongoing administration details, including funding levels, for its income-qualified weatherization and low-income education programs.' The Company expects these discussions to commence in the coming months. The response to this Request is sponsored by Billie McWinn, Energy Efficiency Program & Customer Analysis Leader, Idaho Power Company. IPC-E-23-11 Stipulation and Settlement at 7 IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 2 STAFF REQUEST FOR PRODUCTION NO. 34: Please explain if the Company is considering any other changes to the low-income weatherization programs to increase program performance. RESPONSE TO STAFFS REQUEST FOR PRODUCTION NO. 34: While Idaho Power funds a portion of qualified jobs, the CAP Agencies who administer the programs follow Idaho State Weatherization Assistance Program ("WAP") guidelines when qualifying WAQC projects, which are overseen by the Idaho Department of Health and Welfare ("IDHW"). Idaho Power is in regular communication with IDHW and is aware of changes being proposed to the method of determining eligible measures from a savings to investment ratio ("SIR")-based method to a Priority List method. Idaho Power is prepared to work with the CAP Agencies and IDHW to ensure that Idaho Power low- income weatherization programs are synced up with these changes to streamline the process for both the CAP Agencies and Idaho Power. As part of the discussions described in response to Staff's Request for Production No. 33, Idaho Power also intends to engage with stakeholders to evaluate the contractual $6,000 annual average project cost that CAP Agencies currently work toward, to determine if or how that cap should be changed to keep pace with equipment and other cost increases. The response to this Request is sponsored by Billie McWinn, Energy Efficiency Program & Customer Analysis Leader, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 3 STAFF REQUEST FOR PRODUCTION NO. 35: On Page 10 of the Application, the Company claims that they are requesting only $3,449,976 in DSM labor to be collected through the Rider. This amount leaves $175,313 of remaining labor costs that the Company is not charging to the Rider. Please explain how the Company is paying for the extra $175,313. In the response, please specify if this amount is being booked below the line / charged to shareholders, recovered through base rates, or accounted for through other means. RESPONSE TO STAFF'S REQUEST FOR PRODUCTION NO. 35: Idaho Power recorded the $175,313 of remaining 2023 labor costs to O&M Account 908 in December 2023 without a corresponding revenue amount. Because this was an unfunded expense, it resulted in a negative impact to the Company's 2023 earnings. The response to this Request is sponsored by Robert Everett, Finance Team Leader II, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF -4 STAFF REQUEST FOR PRODUCTION NO. 36: For promotional and marketing items in 2023, please answer the following: i. Please explain what marketing measures the Company claims energy efficiency savings on; ii. Please explain the source and basis the Company used to quantify these savings; and iii. Please send copies of all advertisements the Company paid for in 2023, including, but not limited to, all Sponsorship Packages, and any radio or magazine/newspaper advertisements. RESPONSE TO STAFF'S REQUEST FOR PRODUCTION NO. 36: i. Idaho Power does not claim energy savings on promotional and marketing items. Giveaway items for which the Company does claim energy savings fall under the Educational Distribution programs. These giveaway items include LED night lights, Welcome Kits, and Student Energy Efficiency Kits. ii. As described on pages 46-47 of the Demand-Side Management 2023 Annual Report, Idaho Power uses a variety of savings sources for the Giveaway items such as the Regional Technical Forum, third party evaluators, and calculated savings based on survey information. The specific sources of savings information can be found on page 16 of Supplement 1: Cost-Effectiveness. iii. Please see the attachments provided for this response for copies of all advertisements. Due to the voluminous nature of the request, the advertisements/attachments have been provided through the Company's IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 5 FTP site. a. Please note there are numerous copies of print and digital ads as many different sizes are needed for various publications. The response to this Request is sponsored by Billie McWinn, Energy Efficiency Program & Customer Analysis Leader, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 6 STAFF REQUEST FOR PRODUCTION NO. 37: In the Residential New Construction Program PY2022 Evaluation ("Evaluation"), the evaluator describes how it verified that reported model output savings and tracked savings matched. The Evaluation explains that tracking data for the program is retrieved from the regional AXIS database, reviewed by Company staff, and entered into the Company's database. Evaluation at 4. Please explain how kWh savings is calculated or otherwise determined and input into the AXIS database. RESPONSE TO STAFF'S REQUEST FOR PRODUCTION NO. 37: Builders who apply for an incentive in the Residential New Construction Program are required to contract with a Residential Energy Services Network (RESNET)-certified rater to ensure the home design will meet program qualifications. The rater works with the builder from the design stages through project completion; performs the required energy modeling (REM) using REM/Rate modeling software; performs site inspections and tests; and enters, maintains, and submits all required technical documentation in the REM/Rate modeling software and the Northwest Energy Efficiency Alliance (NEEA)- maintained AXIS database. Raters must model household energy use in accordance with requirements and guidelines created by the Regional Technical Forum (RTF). A description of the overall process can be found on the BetterBuilt Northwest website. https://betterbuiltnw.com/assets/uploads/resources/Performance-Path-Overview- and-Modeling-for-Utilities-May-2017.pdf The RTF developed a New Homes Protocol calculator to determine the savings for each new construction project. The calculator estimates the heating and cooling energy savings by adjusting the output from the REM/Rate models for each project and IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 7 its baseline case. The energy savings for non-heating and cooling measures like water heaters and appliances are derived from the applicable RTF unit energy savings workbooks. The savings calculator takes into account the baseline definition for shell and HVAC for each state based on its codes. AXIS is set up to do this calculation in the back end. The protocols and calculator can be found on the RTF's website. https://nwcounci1.app.box.com/v/NewHomeSProt-v3-1 https://nwcounci1.app.box.com/v/NewHomeSP-CaIc-v3-1 The response to this Request is sponsored by Billie McWinn, Energy Efficiency Program & Customer Analysis Leader, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 8 STAFF REQUEST FOR PRODUCTION NO. 38: Please provide an example data output from the AXIS system. RESPONSE TO STAFFS REQUEST FOR PRODUCTION NO. 38: Please see the Confidential attachment to Staff's Request for Production No. 42 for an example of data output from the AXIS system. The response to this Request is sponsored by Billie McWinn, Energy Efficiency Program & Customer Analysis Leader, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 9 STAFF REQUEST FOR PRODUCTION NO. 39: Please provide a list detailing if and what amount (i.e., number of months) of billing data is available for each Residential New Construction Rebate issued in PY2022 at the time the Evaluation was initiated. RESPONSE TO STAFF'S REQUEST FOR PRODUCTION NO. 39: The Residential New Construction (RNC) evaluation was initiated on June 19, 2023. At that point, 107 out of the 109 service points that received RNC rebates in PY2022 were being actively metered and had billing data available. The table below lists the number of months of consecutive billing data available for the 109 PY2022 participants as of June 19th, 2023. The Company notes that having multiple consecutive months of billing data available does not necessarily mean that the household was occupied during that period or that the data was representative of regular consumption. Amount of Billing Data Available Among PY2022 RNC Participants on June 19th, 2023 # Months Count NA 2 0 3 1 5 2 9 3 7 4 3 5 2 6 4 7 3 8 4 9 7 10 4 11 9 12 5 13 2 14 2 15 4 16 4 17 7 IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 10 18 4 19 3 20 0 21 4 22 S 23 4 24 2 >24 1 The response to this Request is sponsored by Billie McWinn, Energy Efficiency Program & Customer Analysis Leader, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 11 STAFF REQUEST FOR PRODUCTION NO. 40: Please explain if the Company has conducted any internal analysis of the Residential New Construction Program using billing data from the incentivized constructions. If yes, please provide analysis. If not, why not? RESPONSE TO STAFFS REQUEST FOR PRODUCTION NO. 40: The Company has not conducted an internal analysis of the Residential New Construction program using billing data. Savings for the Residential New Construction Program are calculated using a standardized regional modeling approach developed by NEEA and the RTF, as described in the Company's response to Request No. 37. Evaluation activities such as billing analysis are meant to address specific researchable issues or objectives. Given that the savings for this program are based on well-founded and documented modeling practices, the Company has not identified any reasons to perform internal analysis of billing data within the Residential New Construction Program. The response to this Request is sponsored by Billie McWinn, Energy Efficiency Program & Customer Analysis Leader, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 12 STAFF REQUEST FOR PRODUCTION NO. 41: Please provide a timeline for the PY2022 Evaluation showing start date, important milestones, and end date. RESPONSE TO STAFF'S REQUEST FOR PRODUCTION NO. 41: Idaho Power is interpreting "the PY2022 Evaluation"to refer to the Residential New Construction impact evaluation of program year 2022. The Evaluation was conducted along the following timeline: • RFP Issued — August 11, 2022 • Proposals Received — September 16, 2022 • Evaluator Selected — October 18, 2022 • SOW Executed — May 30, 2023 • Kickoff Meeting — June 19, 2023 • Program Data Requested by Evaluator— June 19, 2023 • Program Data Sent to Evaluator— June 20, 2023 • Draft Work Plan Finalized — July 20, 2023 • Participant Sample Selected — July 26, 2023 • Additional Data Sent to Evaluator— September 5, 2023 • Engineering Desk Reviews Completed — October 20, 2023 • Draft Evaluation Report Received — November 22, 2023 • Final Evaluation Report Received — January 11 , 2024 The response to this Request is sponsored by Billie McWinn, Energy Efficiency Program & Customer Analysis Leader, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 13 STAFF REQUEST FOR PRODUCTION NO. 42: Please explain if the REM/Rate modeling documentation supporting the Residential New Construction Program incentives provides details on what types of upgrades are being selected to meet energy savings targets. If so, provide a breakdown of upgrade types selected by participants for the 2022 and 2023 program years. RESPONSE TO STAFF'S REQUEST FOR PRODUCTION NO. 42: Please see the Confidential attachment provided for this response. The attachment contains the data output from the AXIS system for all Residential New Construction Program incentives for the 2022 and 2023 program years. The AXIS output contains the same data as the REM/Rate Model. The AXIS output provides details on what types of upgrades are being selected for the Residential New Construction Program. Column A identifies the program year the savings for each project were claimed; column B contains the Idaho Power ID number. The output from AXIS begins in column C and contains nearly 200 datapoints for each home. A complete breakdown of upgrade types selected by participant would be difficult to summarize, but the Confidential attachment contains the following information on upgrades if the project contained them: • Foundation type, area, and U-value • Ceiling area and R-Value • Window area and U-value • Heating system type and HSPF efficiency • Cooling system type and SEER efficiency • Water heater system type, capacity, and energy factor • Clothes washer and dryer efficiency IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 14 The response to this Request is sponsored by Billie McWinn, Energy Efficiency Program & Customer Analysis Leader, Idaho Power Company. Respectfully submitted this 24th day of June 2024. 0 MEGAN GOICOECHEA ALLEN Attorney for Idaho Power Company IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 15 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 24th day of June 2024, 1 served a true and correct copy of the within and foregoing Idaho Power Company's Response to the Third Production Request of the Commission Staff upon the following named parties by the method indicated below, and addressed to the following: Adam Triplett Hand Delivered Deputy Attorneys General U.S. Mail Idaho Public Utilities Commission Overnight Mail P.O. Box 83720 FAX Boise, ID 83720-0074 X Email adam.triplett(a),puc.idaho.gov Ed Jewell Hand Delivered City of Boise City U.S. Mail 150 N. Capitol Blvd. Overnight Mail P.O. Box 500 FAX Boise, Idaho 83701-0500 X Email BoiseCityAttorney(a)_cityofboise.org ejewell cityofboise.org Steven Hubble Hand Delivered Boise City Dept. of Public Works U.S. Mail 150 N. Capitol Blvd. Overnight Mail P.O. Box 500 FAX Boise, Idaho 83701-0500 X Email shubble cityofboise.org Matthew Nykiel Hand Delivered Attorney for Idaho Conservation League U.S. Mail 710 N. 6th St. Overnight Mail Boise, ID 83702 FAX X Email matthew.nykielC@.gmail.com Brad Heusinkveld Hand Delivered Idaho Conservation League U.S. Mail 710 N. 6th St. Overnight Mail Boise, Idaho 83702 FAX X Email bheusinkveld(a)_idahoconservation.org IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 16 F. Diego Rivas Hand Delivered NW Energy Coalition U.S. Mail 1101 8th Ave Overnight Mail Helena, MT 59601 FAX X Email diego nwenergy.org Ken Robinette Hand Delivered South Central Community Action U.S. Mail Partnership Overnight Mail 550 Washington Street South FAX Twin Falls, ID 83303 X Email ken _sccap-id.org a4lw Christy Davenport, Legal Assistant IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF - 17